FINANCE

(SUPPLEMENTARY}

BILL,2O2L
 A

BILL

further to amend cerTain laws relating to taxes and duties

WHEREAS, it is expedient further to amend certain laws relating to taxes and

duties for the purposes hereinafter appearing:

It is hereby enacted as follows: -

1. Short title and commencement.

- (1) This Act shall be called the
Finance (Supplementary) Acl, 2021 .

(2) lt shall, unless specified otherwise, come into force at once

2. Amendments of Customs Act, 1969 (lV of 1969).- ln the Customs Act,

1969 (lV of 1969), the following further amendments shall be made, namely.-

(1) in section 25A, in sub-section (1), the expression "the Collector of

Customs on his own motion or" shall be omitted;

(2) in section 25D, in the first proviso, for the colon at the end, a full stop shall

be substituted and thereafter the second proviso shall be omitted;

(3) in section 80, in sub-section (3) for the expression "Notwithstanding

anything contained in this Act if during the checking of goods declaration

or within three years of rts clearance under sub-section (1) of section 83",

the words 'lf during the checking of goods declaration" shall be

substituted,

1
 (4) in section 81, in sub-section (1), the expression ",corporate guaranlee"

wherever occurring, shall be omitted;

(5) in section 194A, in sub-section (1), after the omitted clause (e), the

following new clause shall be added, namely:-

'(0 an order passed in revision by the Director-General Cusloms

Valuation under section 25D, provided that such appeal shall be

heard by a special bench consisting of one technical member and

one judicial member:", and

(6) in section 196, in sub-section (1), the expression "or order of the Merrber

Customs (Policy) under sections 25D and 2128" shall be omitted;

3. Amendments of the Sales Tax Act, 1990.- ln the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-

(1) in section 2,-

(a) in clause (5AB), in sub-clause (d), for the word'ten", the word
"eight" shall be substituted; and

(b) in clause (43,A),-

(i) in sub-clause (f), the word "and" at the end shall be ornitted;
and
(ii) after sub-clause (f), amended as aforesaid, the folowing
new sub-clause shall be inserted, namely:-

"(g) a retailer whose deductible withholding tax under

sections 236G or 236H of the lncome Tax Ordirance
2001(XLIX of 2001) durrng the immediately pre:eding

')
 twelve consecutive months has exceeded the
threshold as may be specified by the Board through
notification in the official Gazette; and";

(2) in section 3, in sub-section (2), in clause (a), in the proviso, for the words
"Federal Government", the word "Board" shall be substituted;

(3) in section 23,in sub-section (1),-

(a) in clause (b), in the proviso, for the semi colon at the end a colon
shall be substituted and thereafter the following new proviso shall
be added, namely:-

"Provided further that the condition of NIC shall not apply in

the case of payment through debit or credit card or digital mode;"
and

(b) in clause (g), in the second proviso for the colon a full stop shall be
substituted and thereafter the third proviso shall be omitted;

(4) after section 30C, the following new section shall be added, namely:-

of Digital lnvoicing and

"30CA.Directorate General
Analysis.--The Directorate General of Digital lnvoicing and
Analysis shall consist of a Director General and as many Directors,
Additional Directors. Deputy Directors and Assistant Directors and
such other officers as the Board may, by notification in the official
":
Gazette. appoint

(s) in section 33, rn the Table.-

(a) against serial number 23.-

(i) in column (1) and column (2). for the words "cigarette
packs", 'cigarette stock" and 'cigarettes", wherever
)
J
 occurring, the expression "specified goods" shall be
substituted; and

(ii) in column (2), the expression "and destruction" shall be

omitted;
(b) against serial number 24, in column (1), in column (2), after the
first paragraph the following new paragraph shall be rnserted,
namely:-

"Notwithstanding above, the business premises of such person

shall be liable to be sealed by an officer of lnland Revenue in
the manner prescribed."; and
(c) against serial number 25A, in column (1), in column (2),-

(i) for the first proviso, the following shall be substittrted,

namely:-

"Notwithstanding above, the business premises of ;uch

person shall be liable to be sealed by an offrcer of lrland
Revenue in the manner prescribed."; and

(ii) in the existing second proviso, the word "further" shall be

omitted;

(6) in the Third Schedule, serial number 50, in column (1)and entries relating
thereto in columns (2) and (3) shall be omitted with effect from 1't day of
December,2021,

(7) in the Fifth Schedule, in column (1),-

(a) sertal numbers 3,64,9, 15 and 18 and entries relating therr:to in

column (2) shall be omitted;

(b) against serial number 12, clauses (xvri) and (xix) shall be omrtt:d
4
 (c) afterthe omitted serial number 1B in column (1)and entries relating
thereto in column (2), the following new serial numbers and entries
relating thereto in column (2) shall be added, namely:-

1 I Drugs registered under the Drugs Act, 1976 (XXXI of

1976), or medicaments as classified under chapter 30
of the First Schedule to the Customs Act, 1969 (lV of
1969) except PCT heading 3005.0000
20 Petroleum Crude Oil (PCT heading 2709.0000)."

(8) in the Sixth Schedule,-

(a) in Table-1, in column (1),-

(i) serial numbers 1,2, 3, 11, 12, 16,20, 21, 23, 46, 49,50, 51,
52, 524, 53, 54, 55, 57, 58, 60, 61, 63, 71, 72, 81, 84, 92,
99, 102, 104, 105, 107, 109, 1 10, 1 1 3, 114, 1 16, 1 17, 126,
127,129, 130, 131,132,134,135, 136, 138, 139, 140,141,
142, 146, 149,150, 155 and '158 and entries relating thereto
in columns (2) and (3) shall be omitted; and

(ii) against serial number 13 in column (2) after the word

"vegetables" the words " imported from Afghanistan" shall be
inserted;
(iii) for serial number 15 and entries relating thereto in columns
(2) and (3), the following shall be substituted, namely: -

"15 it imported from 0804 1010, 0804 1020,

Afghanistan 0804 2000, 0804 3000,
excluding apples 0804 4000, 0804.5010,
PCT 0808 1000 0804 s020, 0804.5030,
0805 1 000, 0805 2910,

5
 0805 2100, 0805 220(
T
0805 2990, 0805 400 I, i

0805 5000,
i

0805 900 l,
0806 1000, 0806 2003,
0807 100,
1 0807 1900,
0807 2000, 0808.3000,
0808 4000, 0809.10c0,
0809 2000, 0809.30c0,
0809 4000, 0810 10[0,
081 0 2000, 0810 40tr0,
081 0 5000, 0810.6000,
081 0 9010, 0810 9000,
081 1000,
1 081 1 2000,
081 9000,
1 0813 10()0,
081 3 2000, 0813 30()0,
081 3 4010, 08134020 and
081 3 4090";

(iv) for serial number 19 and entries relating thereto in colrmns

(2) and (3), the following shall be substituted namely: -
-- t
j 19. Rice, wheat, wheat Respective heading."
l
and meslin flour
L_

(v) for serial number 32 and entries relating thereto in co umns

(2) and (3), the following shall be substituted, namety -

32 Newsprint and educational text 4801 0000,

books but excluding brochures, 4901 91 00.

leaflets and directories 4901 9990 and

4903 0000
- -r

€,
 (vi) for serial number 156 and entries relating thereto in columns
(2) and (3), the following shall be substituted, namely. -

"1 56 lmport of
CKD kits by local Re spect VE
manufacturers of following headi ng
Electric Vehicles:-
i) Road Tractors for seml-
trailers (Electric Prime
lr/overs)
(ii) Electric Buses
(iii) Three Wheeler Electric
Rickshaw
(iv) Three Wheeler Electric
Loader
(v) Electric Trucks
(vi) Electric [Vlotorcycle

(b) in Table-2, in column (1),-

(i) serial numbers 1,2,4,9, 15 16,22. 23. 33 and 38 and

entries relating thereto in columns (2) and (3) shall be

omitted;

(ii) for serial number 7 and entries relating thereto in columns

(2) and (3), the following shall be substituted, namely: -

7 "Bread, Nan, Chapatti, Sheer Respective heading.";

mal prepared in tandoors
excluding those prepared in

bakeries, restaurants, food

chains and sweet shops.
L

l
(iii) after serial number 39 and entries relating thereto in colurnns
(2) and (3), the following new serial numbers and entries
relating thereto in in columns (2) and (3) shall be adcled,
namely:-

"40 Live Animals and live Respective headings

poultry
41 lt/eat of bovine animals, Respective headings
sheep, goat and
uncooked poultry meat
excluding those sold in

retail packing under a

brand name
42 Fish and crustaceans Respective headings
excluding those sold in

retail packaging under a

brand name
43 Live plants including 0601 1010, 0601 1030
bulbs, roots and the like 0601 2000, 0602.1 010
0602 2000, 0602 3010
0602 4000,
0602 9010 and
0602 9090
44 Cereals other than rice, Respective headings
wheat, wheat and meslin
flour
45 Ed ible vegetables 0701 .1 000, 0702 0001,
includ ing roots a nd 0703 2000, 0703 9001.
tubers, except ware 0704.1000, 0704 2001,
potato and onrons, 0704 9000, 0705 11 01,
whether fresh, frozen or 0705 1900, 070s 2101,
otherwise preserved 0705 2900, 0706 1001

8
 (e.9. in cold storage) but 0706.9000,0707 0000,
excluding those bottled 0708 1000,0709 2000,
or canned. 0708 9000, 0709 1 000,
0709 2000, 0709 3000,
0709 4000, 0709 51 00,
0709.5910, 0709 5990,
0709.6000, 0709 7000,
0709 9000,0710 1 000,
0710.2100, 071 0 2200,
0710 2900, t-710 3000,
0710 4000,0710 8000,
0710 9000,0712 2000,
0712 3100,0712 3200,
0712 3300,0712 3900
and 0712 9000
46 Edible fruits Respective headings
47 Sugar cane 1212.9300
48 Eggs including eggs for 0407 .1 100, 0407 '1900
hatching 0407 2100 and
0407 2900

49 Compost (non- Respective headings

commercial fertilizer)
50 Locally manufactured 8471 3010 and
laptops, computers, 8471 3020
notebooks whether or
not incorporating
multimedia kit and
personal computers
51 Newspaper Respectrve headings"
l

and

(c) in Table-3, in the Annexure, in column (1), serial numbers 1,

2,2A 3 4 5. 6 7, B. 9, 11, 13, 14, 14A, 15, 15A 158, 17

9
 and 21 and entries relating thereto in columns (2), (3) and
(4) shall be omitted,

(9) in the Eighth Schedule,-

(a) in Table-1, in column (1),-

(i) serial numbers 4,6,7,8, 9, 10, 11, 12, 13, 14, 15, 16. 17,
20,26,27,28,29, 30, 34,45,46,54,55, 59, 61,62,63 64,
66,4,668,68,69,75 and 76 and entries relating therelo in
columns (2), (3), (4) and (5) shall be omitted;

(ii) against serial number 66, in column (4), for the expression
"10%", the expression "12%" shall be substituted;

(iii) for serial number 70 and entries relating thereto in colunns

(2), (3), (4) and (5), the following shall be substituted,
namely.-

"70 Following locally I Respective

manufactured heading
Ir Local
supplies
electric vehicles only";
(i) Road Tractors
for semi-
trailers
(Electric Prime
[tr'lovers)

Electric Buses
iii) Three Wheeler ,

Electric
Rickshaw
(iv) Three Wheeler
Electric Loader

10
 (v) Electric Trucks
vi) Electric
Motorcycle

(iv) against serial number 72, in column (5), for the expression
"1000cc", the expression "850cc" shall be substituted,

(v) for serial number 73 and entries relating thereto in columns

(2), (3), (4) and (5), the following shall be substituted,
namely:-
"73 lmport and local 87.03 12.5%
supply of Hybrid
Electric Vehicles
upto 1800cc"

(vi) after the omitted serial number 76 and entries relating

thereto, the following new serial number and entries relating
thereto in columns (2), (3), (4) and (5) shall be added,
namely:-

,,77
personal 8471 3020 5% lf imported
computers and and in CBU
Laptop computers, 8471 3010 condrtion";
notebooks and
whether or not
incorporating
multimedia kit

(b) Table-2 shall be omitted;

(10) in the Ninth Schedule rn Table-ll. in column (1), against serial number 1

in column (2).-

11
 (a) against category E, in column (3), for the expression "Rs. 1 ,7,10",

the expression "17o/o ad valorem" shall be substituted;

(b) against category F, in column (3), for the expression "Rs. 5,400",
the expression "17o/o ad valorem" shall be substituted; and

(c) against category G, in column (3), for the expression "Rs. 9,2 20",

the expression "17% ad valorem" shall be substituted;

4. Amendments of lslamabad Capital Territory (Tax on Servic:s),

Ordinance, i1001, (XLll of 2001).- ln the lslamabad Capital Territory (Tax on Services),
Ordinance,2:.001, (XLll of 2001), the following further amendments shall be merde,
namely:-

(1) in section 3, -
(a) for sub-section (1), the following shall be substituted, namely:-

"(1) Subject to the provisions of this Ordinance, there shal be

charged, levied and paid a tax known as sales tax at rates

specified in column (4) of Table-1 of the Schedule to this

Ordinance of the value of the taxable services renderec or

provided in the lslamabad Capital Territory.

Provided that the servrces specified in Table-2 of the

Schedule shall be charged to tax at such rates and subject to s;uch

conditions and limitations as specified therein:": and

(b) in sub-section t2). for the words ''the Schedule to this Ordinarrce",

the expressron 'Table-'1 or Table-2 of the Schedule to this

Ordinance, as the case may be." shall be substituted,

1.?_
(2) in the Schedule, -
(a) the existing schedule shall be re-named as Table-1; and
(b) after Table-1 amended as aforesaid, the following new Table shall
be added, namely:-

"Table-2

PCT
S.No Description Heading, if Rate of Tax
applicable
(1)
(21 (3) (4)
1 Construction services, excluding 9814.2000 Zero per cent
and subject to the
(i) Construction projects (industrial 9824 0000 condition that
and commercial) of the value no input tax
(excluding actual and documented adjustment or
cost of land) not exceeding Rs.50 refund shall be
million per annum admissible
(ii) The cases where sales tax is
otherwise paid as property
developers or promoters
(iii) Government civil works rncluding
cantonment boards
(iv) Construction of industrial zones,
consular building and other
organizations exempt from income
tax.
(v) Residentialconstructionpro.lects
where the covered area does not
exceed 10,000 square feet for
houses and 20.000 square feet for
apartments
2 Services provided for personal care by 9810 0000 Five per cent

13
 berauty parlours, clinics and slimming 9821 4000 subject to th:
clinics, body massage centres, pedicure and condition th;rt
cerntres, including cosmetic and plastic 9821 5000 no input tar
sLrrgery by such parlours i clinics, but adjustment or
excluding cases where - refund shall tle
(i) annual turnover does not exceed admissible.
Rs.3.6 million; or
(ii) the facility of air-conditioning is not
installed or available in the
premises.
3 Services provided by freight forwarding 9805 3000 Five percent or
aqents, and packers and movers. and Rs. 1000 perr

9819 1400 bill of ladingr,

whichever is
higher subject
to the condition
that no input tax
adjustment cr
refund shall be
admissible.
4 {lervices provided by tour operators and 9803 9000 Five per cerrt
travel agents including all their allied 9805 5000 subject to tl'e
services or facilities (other than Hajj and and condition th rt
Llmrah). 9805 5100 no input ta;<

adjustment :r
refund shall be
admissible.
t, :Services provided by specialized 98 Five per cert
vrorkshops or undertakings (auto- subject to tire
vrorkshops; workshops for industrial condition that
rrachinery, construction and earth- no input tax
rroving machinery or other special adjustment or

14
 purpose machinery etc; workshops for refund shall be
electric or electronic equipment or admissible.
appliances etc. lncluding computer hard
ware, car washing or similar service
stations and other workshops).
b. Services provided by health clubs, gyms, 9821 1000, Five per cent
physical fitness centres, indoor sports and 9821 2000 subject to the
games centres and body or sauna and condition that
massage centres. 9821 4000 no input tax
adjustment or
refund shall be
admrssible.
7 Services provided by laundries and dry 981 '1 0000 Five per cent
cleaners. subject to the
condition that
no input tax
adjustment or
refund shall be
admissible.
8 Services provided by property dealers Respective Zero per cent
and realtors. headings subject to the
condition that
no input tax
adjustment or
refund shall be
admissible.
9 Services provided by car / automobile Respective Five per cent
dealers. headings subject to the
condition that
no input tax
adjustment or
refund shall be

1tr
L)
 admissible
10 Serrvices provided or rendered by Respective Five per cenl
marriage halls and lawns, by whatever headings subject to ther
name called, including "pandal" and condition that
"sramiana" services and caterers. no input tax
adjustment or
refund shall be
admissible.
11 lT services and lT-enabled services. Respective Five Percent
E:rplanation.- For the purpose of this headings
entry -
(a) "lT services" include software
development, software maintenance,
system integration, web design, web
development, web hosting and network
design; and

(b) "lT enabled services" include

inbound or outbound call centres,
medical transcription, remote
monitoring, graphics design,
accounting services, HR services,
telemedicine centers, data entry
operations, locally produced television
programs and insurance claims
p rocessrng
1"2 S,ervices provided by property developers 9807 0000 Zero per cent
and prornoters (including allied services) and subject to ttre
r,:lating to low cost housing schemes respective condition that
sponsored or approved by Naya Pakistan sub-headings no input tax
l-lousing and Development Authority or of heading adjustment or
urnder Government's Ehsaas programme 98 14 refund shall be
admissible ";

l6
 5. Amendments of lncome Tax Ordinance,2001 (XLIX of 2001). - ln the
lncome Tax Ordinance,2001 (XLIX of 2001), the following further amendments shall be
made, namely:-

(1) in section 2, after clause (17A), the following new clause shall be inserted,
namely:-

"(178) "digital means" mean electronic or digital payments as defined

by the State Bank of Pakistan'"

(2) in section 21,in clause (la), in the proviso, for the semi colon at the end, a

colon shall be substituted and thereafter the following new proviso shall be
added, namely:-

"Provided further that this clause shall be effective from such date
as the Board may notify;";

(3) in section 153, in sub-section (3), tn the proviso, in clause (c), forthe semi
colon at the end, a full stop shall be substituted and thereafter the
following explanation shall be added, namely:-

"Explanation- For the removal of doubt, it is explained that the

income of resident person referred to in sub-section (3) means the amount
on which tax rs deductible under sub-section (1)or (2) of this section.";

(4) in section 165A, in sub-section (1),-

(a) in clause (d), for full stop at the end, a semi colon and the word
"and" shall be substituted, and
(b) after the omitted clause (e), the following new clause shall be

added, namely: -

"(0 a list of persons containing particulars of their business

accounts opened or re-designated during each preceding
calendar month ",

1.7
(5) in section 216, in sub-section (3),-
(a) in clause (s), for full stop at the end, a semi colon and the word "or"
shall be substituted; and
(b) after clause (s), amended as foresaid, the following new cliruse
shall be added and shall always be deemed to have beerr so
added, namely.-

" (t) in respect of any high-level public officials and ptblic

servants in BPS-17 and above, their spouses, children or
benamidars, or any person in relation to whom the a'ore-
mentioned persons are beneficial owner:
Provided that nothing in clause (t) shall apply to tlrose
who are expressly excepted under clause (iv) of sub-se,:tion
(m) of section 5 of the National Accountability Bureau
Ordinance, 1999 (Ordinance No. XVlll of 1999).
Explanation.- "High-level public officials" nlean
politically exposed persons as defined by a rule, regulation,
executive order or instrument; or under any law for the time
being in force.";

(6) in section 233, after sub-section (3), the following explanation shall be
added, namely:-

"Explanation.- For the removal of doubt, it is explained that

the income of person referred to in sub-sections (28) and (3) m:ans
the amount on which tax is deductible under sub-sections (1)or (2A)
of this section.";
(7) after section 236C, the following new section shall be inserted, namell, -

"236CA. Advance tax on TV plays and advertisements.-

(1)Any licensing authority certifying any foreign TV drama seral or
a play dubbed in Urdu or any other language. for screening and
vtewing on any landing rights channel, shall collect advance titx at
the rates specified in Division XA of Part lV of the Frrst Schedure

l8
 (2) Any licensing authority certifying any commercial for
advertisement starring foreign actor, for screening and viewing on
any landing rights channel shall collect advance tax at the rates
specified in Division XA of Part lV of the First Schedule.

fhe tax required to be collected under this section shall

(3)
be minimum tax in respect of income arising from such drama
serial or play or advertisement referred to in sub-section (1)or (2)
of this section.";

(8) in section 236Q, after sub-section (3), the following explanation shall be
added, namely:-

"Explanation.- For the removal of doubt, it is explained that the

income of person referred to in sub-section (3) means the amount on

which tax is deductible under sub-section (1) or (2) of this section.";

(9) in the First Schedule,-

(A) in Part l, in Division lll,-

(i) in clause (b), for the expression ''and (c)" the expression
",(c) and (d)" shall be substituted; and

(ii) clause (c) shall be re-numbered as clause (d) and after

clause (b), amended as aforesaid, the following new clause
shall be inserted, namely:-

"(c) 0% in case of dividend received by a REIT scheme

from Special Purpose Vehicle and 35%o in case of
dividend received by others f rom Special Purpose
Vehicle as defined under the Real Estate lnvestment
Trust Regulations, 201 5.";

19
(B) in Part lll, in Division l,-

(i) in clause (b) for the expression "and (ba), and", the
expression ",(c) and (d);" shatt be substituted; and
(ii) after clause (b), amended as aforesaid, the following rrew
clause shall be inserted, namely:-

"(c) 0% in case of dividend received by a REIT scheme from

Special Purpose Vehicle and 35% in case of dividend
received by others from Special Purpose Vehicler as
defined under the Real Estate lnvestment l'rust
Regulations, 2015, and"; and
(iii) clause (ba) shall be re-numbered as clause (d); anO

(C) in Part lV,-

(a) in Division V, in the Table, in the first column, against Sierial
Number (b), in the third column, for the expression "10'% for
tax year 2022 and 87o onwards", the expression "15%" shall
be substituted; and

(b) in Division Vll, in clause (3). for the TABLE, the foll,>wrng
shall be substituted, namely:

.TABLE
f
S.No Engine capacity Tax
(1) (2) (3)

1 Up to 1000cc Rs 100 000

2. r 1001cc to 2000cc Rs 200 000
3. 2001cc and above I Rs 400,000'

(c) after Division X, the following new Division shall be rnserted

namely.-

20
 "Division XA
Advance Tax on TV plays and advertisements

The rate of tax to be collected under section 236CA shall be,

-
(a) Foreign-produced TV drama serial orplay Rs.'1,000,000 per episode
(b) Foreign-produced TV play (single episode) Rs 3,000,000
(c) Advertisement starring foreign actor Rs. 500,000 per second.",

(10) in the Second Schedule,-

(A) in Part l,-
(i) in clause (99),-
(a) after the words "REIT Scheme", the words "including
Special Purpose Vehicle" shall be inserted; and
(b) ln the explanation, after the word "auditors", the
expression ''and Special Purpose Vehicle shall have the
same meaning as defined under the Real Estate
lnvestment Trust Regulations, 2015" shall be inserted;
(ii) in clause (99A),-

(a) after the word "property", the words "or shares of

Special Purpose Vehicle" shall be inserted: and

(b) after the full stop at the end, the following new
explanation shall be added, namely:-

"Explanation.- For the purpose of this clause,

Special Purpose Vehicle shall have the same
meaning as defined under the Real Estate
lnvestment Trust Regulations. 2015 ". and
(iii) in clause (132), in the sixth proviso, for the words "letter of
intent", the words "Letter of Support" shall be substituted
and shall always be deemed to have been so substituted:
and

27
 (B) in Part lV, in clause (478),-

(a) after the word "scheme", occurring for the second time the
words "including Special Purpose Vehicle" shall be inserted;
and

(b) after the full stop at the end, the following new explanation
shall be added, namely:-

"Explanation.- For the purpose of this cl;ruse,

Special Purpose Vehicle shall have the r;ame
meaning as defined under the Real E state
Investment Trust Regulations, 201 5.".

6. hmendments of Federal Excise Act, 2005. - ln the Federal Excise Act,

200{i, the following further amendments shall be made, namely:-

(1) in the First Schedule, in Table-'1, in column (1),-

(a) against serial No. 55, in column (2),-

(i) against sub-serial (b), in column (4), fc r the

expression "5o/o", the expression "10%" shall be

substituted;

(ii) against sub-serial (c), in column (4), for the

expression "25ok", the expression "30%" slrall be

substituted; and

(iii) against sub-serial (d), in column (4), f rr the

expressron "30%", the expression "40%" s rall be

substituted;

(b) against serial No. 558, in column (2), -

/7
 (i) against sub-serial (b), in column (4), for the

expression "2.5%", the expression "5%" shall

be substituted; and

(ii) against sub-serial (c), in column (4), for the

expression "5%", the expression "10%" shall be

substituted;

(c) against serial No. 55C, in column (4), for the expression
"25%", the expression "30%" shall be substituted; and

(d) against serial No. 55D, in column (4), for the expression

"7.5%", the expression "10%" shall be substituted;

l)
 Statement of Obiects and Reasons
'fhe purpose of this bill is to give legislative effect to the taxa.ion
prop,csals of the Federal Go',,ernment to achieve efficiency, equity in the

tax systenr, broadening of tax base as well as docurnentation of econc,my

and :;hal[ lome into force on the next day of assent given to this Acr by
the f'resident o1'Islamic Republic of Pakistan except clause 3(6) which
shall hav'e effect from I't December,202l.

Shaukat Fayaz Ahmed Tarin

Minister fbr Finance & Revenue

>q
 NOTES ON CLAUSES

CUSTOMS

Clause 2(1) Seeks to amend section 25A to withdraw the powers of Collector to determine
the Customs Value of imported or exported goods and centralize the aforesaid
powers with the Director of valuation to bring uniformity in the process of fixation
of values of goods.

Clause 2(2) Seeks to amendment section 25D so that, appeal against the decision of DG
Valuation should not lie before the l\4ember Customs (Policy) and should be
taken up at some judicial fora to redress the grievances.

Clause 2(3) Seeks to amendment section 80(3) as the time limit aspect has already been
dealt under Section 32 of the Customs Act, 1969.

Clause 2(4) Seeks to amendment section 81(1) in order to avoid any complications to
secure government revenue to retain bank guarantee or pay order.

Clause 2(5) Seeks to add new clause in section 194A so that the aggrieved party may file
appeal before the Appellate Tribunal.

Clause 2(6) Seeks to amend section 196 as a consequential effect of the amendment
proposed in Section 25D of the Customs Act, 1969 whereby the powers of
Member (Customs Policy) with regard to hearing of appeals against the
decision/order of DG valuation have been proposed to be omitted.
SALES TAX

Clause 3(1)(a) Seeks to substitute the word "ten" with the word "eight" in sub-clause
(d) in clause (5AB) in section 2

Clause 3(1)(b) Seeks to insert sub-clause (g) in clause (43A) in section 2

Clause 3(2) Seeks to replace the words "Federal Government" with "Board" in
proviso to clause (a) of sub-section (2) of Section 3

CIause 3(3Xa) Seeks to add new proviso in clause (b) of sub-section (1)of sectir>n 23

Clause 3(3Xb) Seeks to omit third proviso in clause (g) of sub-section (1) of sectitn 23

Clause 3(4) Seeks to add new section 30CA after section 30C

Clause 3(sXa)(it Seeks to replace the words "cigarette pack", "cigarette stock' and
"cigarettes" with the word "specified goods" in column (1)and column
(2) in serial no 23 in the Table in section 33

Clause 3(sXaXii) Seeks to omit the expression " and destruction" in column (2) in serial
No 23 in the Table in section 33

Clause 3(5)(b) Seeks to insert new paragraph in column (2) in serial number 24 in the
Table in section 33

Clause 3(5)(c1 Seeks to replace the first proviso in column (2) in serial number ll5A in
the Table in section 33

Clause 3(6) Seeks to omit Serial No 50 of the Third Schedule

Clause 3(7)(a) Seeks to omit S. Nos 3,64,9, 15 and 18 in column (1)and entries
relatrng thereto in column (2) of the Fifth Schedule

Clause 3(7)(b) Seeks to omit clauses (xvii) and (xix) in column (2) against S. No 12 in
in column (1) of the Fifth Schedule

Clause 3t(7)(c ) Seeks to add new S Nos '19 and 20 after omitted S No. 18 in column
(1)and entries relatrng thereto in colunrn (2) of the Fifth Schedule

Clause :)(8)(a)ri) Seeks to omit S. Nos. 2 3. 1 1, 12, 16, 20, 21, 23, 46, 49, 50, 51, 52, 52A,
1 .
53, 54 55 57, 58. 60, 61 63 71,72 81, 84 92, 99 102,104, 105, 1C7, 109,
'1'10,113 114, 116. 117 126 127.129,'t30, 131 ,132, 134,135, 136, 138,
139 140 141 142. 146,149.150 155 and '158 in column (1) and
=ntries
relating thereto rn columns (2) and (3) in Table-1 of the Sixth Schedule

Clause :](8Xa)(ii) Seeks to add the words "rmported from Afghanistan" after thr-, word
'vegSlelLqs" in column(2) in seria I number '13

L
Clause 3(8)(aXiii) Seeks to substitute serial number 15 in column (1)and entries relating
thereto in columns (2) and (3) in Table-1 of the Sixth Schedule

Clause 3(SXaXiv) Seeks to substitute serial number 19 in column (1)and entries relating
thereto in columns (2) and (3) in Table-1 of the Sixth Schedule

Clause 3(8Xa)(v) Seeks to substitute serial number 32 in column (1)and entries relating
thereto in columns (2) and (3) in Table-1 of the Sixth Schedule

Clause 3(8)(a)(vi) Seeks to substitute serial number 1 56 in column (1) and entries relating
thereto in columns (2) and (3) in Table-1 of the Sixth Schedule

Clause 3(8)(b)(i) Seeks to omit S. Nos. 1, 2, 4,9, 15, 16, 22, 23, 33 and 38 in column
(1)and entries relating thereto in columns (2) and (3) in Table-2 of the
Sixth Schedule

Clause 3(8)(b)(ii) Seeks to substitute serial number 7 in column (1), and entries relating
thereto in columns (2) and (3) in Table-2 of the Sixth Schedule

Clause 3(SXbXiii) Seeks to add new S Nos. 40, 41, 42, 43,44, 45,46,47,48,49 and 50
after S. No 39 in column (1)and entries relating thereto in columns (2)
and (3) in Table-ll of the Sixth Schedule

Clause 3(8Xc) S Nos 1,2,24,3, 4, 5, 6, 7, 8, 9, 11, 13, 14, 14A, 15,

Seeks to omit
15A, 158, 17 and 21 in column (1) and entries relating thereto in
columns (2), (3) and (4) in Table-3 of the Sixth Schedule

Clause 3(9)(a)(i) Seeks to omit S. Nos. 4,6,7,8,9, 10, 11, 12, 13, 14, 15, 16, 17,20,26,
27,28,29. 30 34.45,46,54, s5 59, 61,62,63, 64, 664, 668, 68, 69, 75 and
76 in column (1)and entries relating thereto in columns (2), (3) (4) and
(5) in Table-l of the Eighth Schedule

Seeks to substitute the expression "10" with the expression "12"

1

Clause 3(9Xa)(ii) in
column (4) against S No. 66 in Table-'1 of the Eighth Schedule

Clause 3(9XaXiii) Seeks to substitute serial number 70 in column ('1)and entries relating
thereto in columns (2), (3), (4) and (5) in Table-1 of the Eighth Schedule

Clause 3(9)(a)(iv) Seeks to substitute the expression "850cc" with the expression
"1000cc" in column (5) against S. No. 72 in Table-1 of the Eighth
Schedule

lause 3(9)(a)(v) Seeks to substitute serial number 73 in column (1)and entries relating
thereto in columns (2), (3), (4) and (5) in Table-1 of the Eighth Schedule

Clause 3(9Xa)(vi) Seeks to add S No 77 in column ('1)after S. No.76 in column (1)and

entries relatrng thereto in columns (2), (3), (4) and (5) in Table-l of the
Eighth Schedule

se 3(e)(b) Seeks to omrt Table-2 of the Eighth Schedule

-91qq,

7
Clause 3(10)(a) Seeks to substitute the expression "17% ad val" with the expression
"Rs. 1,750" in column (3), against category E, in column (2), in column
(1), against serial number 1, in Table-2 of the Ninth Schedule

Clause 3(10)(b) Seeks to substitute the expression "17o/o ad val" with the expression
"Rs.5,500" in column (3), against category F, in column (2), in column
(1), against serial number 1, in Table-2 of the Ninth Schedule

Clause 3(1OXc) Seeks to substitute the expression "17%o ad val" with the exprer;sion
"Rs. 9,270" in column (3), against category G, in column (2), in co umn
(1), against serial number 1, in Table-2 of the Ninth Schedule

L1
ISLAMABAD CAPTTAL TERRITORY (TAX ON SERVTCES)

Clause (1Xa) Seeks to substitute sub-section (1) of section 3

Seeks to substitute the expression "the Schedule to this Ordinance"'

Clause 4(1Xb)
with the expression "Table-l or Table -2 of the Schedule to this
Ordinance, as the case ma be,"
Clause a(4@) Seeks to rename the existing schedule as Table-l

Clause 4(2)(b) Seeks to add Tahrle-2 to the Schedule

tr
J
INCOME TAX

Clause 5('l) Seeks to define digital means of payment as per SBP

Clause 5(12) Seeks to empower Board to determine the implementation da:e of

digital means of payment in case of Companies.

Clause 5(ii) Seeks to add explanation in section 153(1) (b) of the Ordinance

Clause s(aXa) Seeks to replace full stop with a semi colon and the word "anl" in
clause (d) of sub-section (1) of section 165A..

Clause 5(4)(b) Seeks to add clause (l) in sub-section (1) of section '1654 to irllow
banks to provide list of newly opened and re-designated busiress
accounts.

Clause 5(tr)(a) Seeks to replace full stop with a semi colon and the word "or" in cl;ruse
(s) of sub-section (3) of section 216.

Clause 5({rXb) Seeks to add a clause (t) in Section 216(3) of the Ordinance to ;rllow
disclosure of information in respect of high-level public officials and
public servants.

Clause 5(6) i Seeks to-a?d explination in seCtro{l 2ss(ii oa$A Ordinance

Clause 5(,2) Seeks to introduce advance Tax on foreign TV plays and

advertisements through insertion of section 236CA in the Ordinarrce.

Clause 5(t)) Seeks to add explanation in section 236Q(3) of the Ordinance

Clause sigxnr:il Seaks to exEtuoe Special pu:pose VEhicte from othe r mutual funos for
rate purpose

t)
 Clause 5(gXA)(ii) Seeks to provide tax rate chargeable on dividend issued by Special
Purpose Vehicle as defined under the Real Estate lnvestment Trust
Regulations, 2015

Clause 5(e)(B)(i) Seeks to exclude Special Purpose Vehicle from other mutual funds for
rate purpose.

Clause 5(9XBX|i) Seeks to provide advance tax rate on payment of dividend issued by
Special Purpose Vehicle as defined under the Real Estate lnvestment
Trust Regulations, 201 5.

Clause s(9)(B)(iii) Seeks to renumber the clause

Clause 5(9XC)(a) Seeks to change rate on advance tax on cellular services in Division
V of Part lV of First schedule of the Ordinance.

Clause 5(9XCXb) Seeks to substitute the TABLE in clause (3) in Division Vll of First
schedule of the Ordinance

Clause 5(gXC)(c) Seeks to introduce rates of advance tax to be collected under section
236CA of the Ordinance.

Clause 5(1OXAX|) Seeks to provide exemption to SPV

Clause 5(1 0)(A)(ii)(a) Seeks to extend exemption on profit and gains of Special Purpose
Vehicle of REIT scheme

Clause 5(1O)(AXiiXb) Seeks to explain meaning of Special Purpose Vehicle

i^
U lause 5(10)(AXiii) Seeks to make technical correction by replacing letter of intent with
Letter of Support.

Clause 5(1 0)(B)(a) Seeks to extend the scope of exemption from certain withholding
provisions to Special Purpose Vehicle of REIT scheme.

7
FEDERAL EXC!SE:

Clause 6(1)(a)(i) Seeks to substitute the expression "1oo/o" with the expression "5%" in
sub-serial (b) of S. No. 55 in column (4) of Table-l of First Schedule

Clause 6(l XaXii) Seeks to substitute the expression "30%" with the expression "2;%"
rn sub-serial (c) of S. No. 55 in column (4) of Table-l of First Scherlule

Clause 6(1)(a)(iiii Seeks to substitute the expression "40o/;' with the expression "30%"
in sub-serial (d) of S. No. 55 in column (4) of Table-l of First ScheCule

Clause 6(1XbXi) Seeks to substitute the expression "5%" with the expression "2 5%" in sub-
serial (b) of S. No. 558 in column (4) of Table-l of First Schedule

Clause 6(1)(b)(ii) Seeks to substitute the expression "'10%" with the expression "5%" ir sub-
serial (c) of S. No. 558 in column (4) of Table-l of First Schedule

Clause 6(1Xc) Seeks to substitute the expression "30%" with the expression "25%' in S
No 55C in column (4) of Table-l of First Schedule

Clause 6(1Xd) Seeks to substitute the expression "l0%" with the expression "T 5%'in S
No 55D in column (4) of Table-l of First Schedule